Clare Daly (Dublin Fingal, Independent)
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971. To ask the Minister for Communications, Climate Action and Environment the estimated cost to the State of the upgrades to the electricity grid and transmission infrastructure necessary to facilitate large-scale expansion of data centres owned by foreign multinationals over the next decade; and if he will make a statement on the matter. [45954/17]

Denis Naughten (Roscommon-Galway, Independent)
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The Tánaiste and Minister for Business, Enterprise and Innovation in conjunction with other relevant Ministers is leading a  cross-government effort to develop a national policy statement on the strategic importance of data centres as part of Ireland’s Enterprise Strategy, with a first draft expected later this year. This strategic policy approach will include proposed amendments to the Strategic Infrastructure Act and take account of wider energy policy developments. I am strongly of the view that the development of data centres must be plan-led. I believe the policy statement will lay out a clear and balanced approach to the development of the sector, one that will take account of a variety of elements including regional development, costs and benefits and the impact on Ireland’s electricity grid. EirGrid, the state’s electricity transmission system operator, makes considerable efforts to ensure that the electricity system can cope with the increasing demands placed on it by the increase in the number of data centres in the last decade, as well as planning to meet future demands, as reflected in their Tomorrow's Energy Scenarios 2017publication.

Whilst data centre development requires significant enhancement of the electricity grid, it is not expected that there will be a cost to the State for transmission system upgrades which may be required to facilitate this forecasted demand growth over the next decade. Infrastructure requirements are paid for through a combination of direct customer connection charges levied in advance of connection and monthly usage of system charges, both of which are regulated by the Commission for Regulation of Utilities (CRU).

In accordance with CRU approved connection charging policy, demand customers connecting to the transmission system pay 50% of the cost of chargeable connection assets in advance of connection. The balance of connection costs are recovered via monthly usage of system charges referred to as Transmission Use of System (TUoS) charges. TUoS charges are designed to recover the cost of developing, maintaining and operating the transmission system in Ireland. The TUoS Statement of Charges is updated annually, via a public consultation process which is overseen by CRU.